In this second part of our post on Insurance Coverage for False Claims Act, Whistleblower, and Qui Tam Lawsuits, we conclude our five tips for companies looking to obtain insurance to cover defense and indemnity costs. If you missed the first part of this video, click here to watch it.
Miller Friel, PLLC is a specialized insurance recovery law firm whose sole purpose is to help corporate clients maximize their insurance coverage. Our Focus of exclusively representing policyholders, combined with our extensive Experience in the area of insurance law, leads to greater efficiency, lower costs and better Results. Further discussion and analysis of insurance coverage issues impacting policyholders can be found in our Miller Friel Insurance Coverage Blog and our 7 Tips for Maximizing Coverage series.
Below is the transcript of the video:
FCA, Whistleblower, or Qui Tam cases -Part 2
A fourth strategy for recovering insurance is to carefully evaluate all of the insurance policies under which a policyholder might obtain coverage. Some of those policies include the typical directors and officers coverage, which typically provides the broadest coverage. Policieholders also look to errors and omissions coverage, which particularly can focus on failure to provide certain services, and then also there might be coverage under HIPPA related policies or investigation coverage.
Another policy that businesses should also be considering is there employment practices liability insurance. Even if there is not an employment cause of action, there still might be coverage for an allegation related to that employment. And therefore it’s important to look at our businesses entire insurance program when tendering notice.
A fifth strategy that we advise policyholders to use in recovering money from their insurance policies for their FCA claims is to pursue not just defense coverage but also indemnity coverage. Of course when an investigation or FCA litigation is moving along, the defense costs are high and policyholders want to secure coverage for that. However they should be thinking about those potentially high indemnity costs as well. Costs arising from FCA settlements can include civil fines and penalties and that does not necessarily mean that they are not covered under insurance.
Many courts have construed FCA damages to be compensatory in nature and therefore covered under insurance.
The important take away for policyholders is that they may be able to obtain coverage for both defense and indemnity in FCA matters. Because of the labyrinth of events that can occur to businesses from an inquiry by the government, to the possibility of a settlement involving FCA damages, or an in court verdict in a Qui Tam matter, with an experience coverage counsel businesses may be able to obtain coverage for both the defense and the indemnity costs in whistleblower cases.
FCA matters and whistleblower Qui Tam matters are complicated matters often covering an expanse of several years during which time a policyholder may be subject to government inquiry, government investigations, subpoenas and then litigation in court and all of this may last for a long period of time. With an experienced coverage firm like Miller Friel businesses can navigate those complexities and with our help secure insurance coverage for both defense and indemnity costs.